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South Korea digital VAT update

  • VAT
  • 24 June 2015 | Richard Asquith

South Korea digital VAT update

 

The South Korean tax authorities have provided further guidance to foreign providers of electronic services to consumers ahead of the imposition of digital Korean VAT on 1 July 2015.

Korean VAT returns

Registrations by such foreign providers will by required by the NTS, and must be submitted within 20 days of commencement of taxable supplies. VAT returns will be due on a quarterly basis. VAT returns must be filed by the 25th of the month following the reporting period.

Korean VAT on electronic service

Under the Korean VAT Act, Articles 53, the service subject to the new VAT rules include services provided across the internet or other electronic networks including: apps, games, video, films, music, software, e-documents etc.

Korea is following the EU 2015 VAT changes on e-services this year. South Africa brought foreign providers of e-services into its VAT net last year. Japan has the same plans for Consumption Tax in 2015.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.